Shorting the Retrace Up in EUR/USD, at the 50 SMA

EUR/USD has retraced higher after opening with a bearish gap last night

Skerdian Meta•Monday, March 22, 2021•1 min read

EUR/USD reversing below the 50 SMA already

EUR/USD has turned bearish this year, after being massively bullish last year, due to the USD decline. The USD stopped declining this year, turning EUR/USD bearish. In fact, EUR/USD has become one of the most bearish pairs this year.

It lost around 4 cents from the top at 1.2350 and retraces higher have been met by heavy selling. Today we are seeing a retrace up, after this pair opened with a bearish gap last night. But, we have approached the 50 SMA (yellow) on the H4 chart, which has provided resistance several times before and is scaring buyers already now. We decided to take a position here and opened a sell forex signal. ECB governing member Knot also made some comments as below:

Comments from the Governing Council Member Knot

Major part of the yield rise this year is due to better fundamentals but some of the rise unwarranted
Once economic improvement materializes, reason to front-load asset purchases disappears
Vaccination may allow stimulus exit talks this year

Central bankers weighing in on market levels is a quagmire, but when you run massive QE programs, that’s the result.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.